Serenity, Gwen, Curly, Lane, Hugh, and Hamlet, formed Ace, Bebe and Connie (ABC) Partnership on January 1, 2020. Serenity is an industrial partner assisting the other partners whenever and wherever she can; the others are capitalist partners. At the beginning of the partnership and in the Articles of Partnership, Lane is appointed as Managing partner for purchasing. Subsequently, on January 31, 2021, as business improved, Gwen, Curly, Hugh and Hamlet were appointed as Managing partners for sales. It is agreed that except if expressly authorized by any and/or all of the managing partners in their respective areas of responsibility, no partners may transact business without the consent of the former. Ace and Bebe gave their consent to use their name in the name of the partnership. Connie, however, did not. Contributions of the Partners as well as profit and losses are as follows: PARTNER CONTRIBUTION PROFIT LOSSES Serenity Industry 10% 0% Gwen P1,000,000 10% 10% Curly P2,000,000 20% 20% Lane P3,000,000 20% 20% Hugh P3,500,000 20% 20% Hamlet P10,500,000 20% 30% The business of the Partnership is retail clothing. The principal office of the Partnership is in Cebu, while the principal place of business of the partnership is in Quezon City. TRUE OR FALSE: Mr. Benedict met Serenity by chance at a golf course and subsequently discussed business there. The former, in good faith, was so impressed by the sales pitch of Serenity that a contract was drafted and signed by the parties which Serenity, representing ABC Partnership, obliges itself to deliver 10,000 pairs of shirts to Mr. Benedict. In such a case, the contract would not bind the partnership as it has been expressly agreed that Ms Serenity should get the consent first of the managing partners. One of the debtors of the Partnership is Ms. Yale in the amount of Php 50,000.00. As it turned out Ms. Yale is also indebted to Serenity in the amount of Php 50,000.00. The former paid the latter the amount of Php 50,000.00 without any specification on what debt is to be paid. Serenity issued her personal receipt and applied the whole amount to her personal credit. In such a case the Php 50,000.00 would be applied proportionately to the credit of the Partnership and Serenity. In the first year of operation, the Partnership incurred liability amounting to Php 1,000,000.00. The assets of the partnership equals the partners contribution. In such a case, since the Partnership incurred liability, all the partners are liable with their separate property including Serenity as she is only exempted from losses. Mr. Hamlet owes money to Mr. Kerry. If Mr. Hamlet does not have enough separate assets to pay Mr. Kerry, then the latter has no remedy for he cannot go after partnership assets following the doctrine that a Partnership is a juridical being distinct and separate from that of the partners. The Partnership owns Delivery Van #1 to be used for delivery of the tshirts. Subsequently, it was replaced by a Delivery Truck #2. Delivery Van #1 is just parked in its garage without any apparent use. Curly would like to use it for personal use, however all the other partners did not give their consent. In such case, since Curly is a co-owner of Delivery Van #1, she may use such property even without the consent of the other partners. Besides, it is no longer used in partnership operations.
Serenity, Gwen, Curly, Lane, Hugh, and Hamlet, formed Ace, Bebe and Connie (ABC) Partnership on January 1, 2020. Serenity is an industrial partner assisting the other partners whenever and wherever she can; the others are capitalist partners. At the beginning of the partnership and in the Articles of Partnership, Lane is appointed as Managing partner for purchasing. Subsequently, on January 31, 2021, as business improved, Gwen, Curly, Hugh and Hamlet were appointed as Managing partners for sales. It is agreed that except if expressly authorized by any and/or all of the managing partners in their respective areas of responsibility, no partners may transact business without the consent of the former. Ace and Bebe gave their consent to use their name in the name of the partnership. Connie, however, did not. Contributions of the Partners as well as profit and losses are as follows: PARTNER CONTRIBUTION PROFIT LOSSES Serenity Industry 10% 0% Gwen P1,000,000 10% 10% Curly P2,000,000 20% 20% Lane P3,000,000 20% 20% Hugh P3,500,000 20% 20% Hamlet P10,500,000 20% 30% The business of the Partnership is retail clothing. The principal office of the Partnership is in Cebu, while the principal place of business of the partnership is in Quezon City. TRUE OR FALSE: Mr. Benedict met Serenity by chance at a golf course and subsequently discussed business there. The former, in good faith, was so impressed by the sales pitch of Serenity that a contract was drafted and signed by the parties which Serenity, representing ABC Partnership, obliges itself to deliver 10,000 pairs of shirts to Mr. Benedict. In such a case, the contract would not bind the partnership as it has been expressly agreed that Ms Serenity should get the consent first of the managing partners. One of the debtors of the Partnership is Ms. Yale in the amount of Php 50,000.00. As it turned out Ms. Yale is also indebted to Serenity in the amount of Php 50,000.00. The former paid the latter the amount of Php 50,000.00 without any specification on what debt is to be paid. Serenity issued her personal receipt and applied the whole amount to her personal credit. In such a case the Php 50,000.00 would be applied proportionately to the credit of the Partnership and Serenity. In the first year of operation, the Partnership incurred liability amounting to Php 1,000,000.00. The assets of the partnership equals the partners contribution. In such a case, since the Partnership incurred liability, all the partners are liable with their separate property including Serenity as she is only exempted from losses. Mr. Hamlet owes money to Mr. Kerry. If Mr. Hamlet does not have enough separate assets to pay Mr. Kerry, then the latter has no remedy for he cannot go after partnership assets following the doctrine that a Partnership is a juridical being distinct and separate from that of the partners. The Partnership owns Delivery Van #1 to be used for delivery of the tshirts. Subsequently, it was replaced by a Delivery Truck #2. Delivery Van #1 is just parked in its garage without any apparent use. Curly would like to use it for personal use, however all the other partners did not give their consent. In such case, since Curly is a co-owner of Delivery Van #1, she may use such property even without the consent of the other partners. Besides, it is no longer used in partnership operations.
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Question
Serenity, Gwen, Curly, Lane, Hugh, and Hamlet, formed Ace, Bebe and Connie (ABC) Partnership on January 1, 2020. Serenity is an industrial partner assisting the other partners whenever and wherever she can; the others are capitalist partners. At the beginning of the partnership and in the Articles of Partnership, Lane is appointed as Managing partner for purchasing. Subsequently, on January 31, 2021, as business improved, Gwen, Curly, Hugh and Hamlet were appointed as Managing partners for sales. It is agreed that except if expressly authorized by any and/or all of the managing partners in their respective areas of responsibility, no partners may transact business without the consent of the former. Ace and Bebe gave their consent to use their name in the name of the partnership. Connie, however, did not. Contributions of the Partners as well as
|
PARTNER |
CONTRIBUTION |
PROFIT |
LOSSES |
|
Serenity |
Industry |
10% |
0% |
|
Gwen |
P1,000,000 |
10% |
10% |
|
Curly |
P2,000,000 |
20% |
20% |
|
Lane |
P3,000,000 |
20% |
20% |
|
Hugh |
P3,500,000 |
20% |
20% |
|
Hamlet |
P10,500,000 |
20% |
30% |
The business of the Partnership is retail clothing. The principal office of the Partnership is in Cebu, while the principal place of business of the partnership is in Quezon City.
TRUE OR FALSE:
- Mr. Benedict met Serenity by chance at a golf course and subsequently discussed business there. The former, in good faith, was so impressed by the sales pitch of Serenity that a contract was drafted and signed by the parties which Serenity, representing ABC Partnership, obliges itself to deliver 10,000 pairs of shirts to Mr. Benedict. In such a case, the contract would not bind the partnership as it has been expressly agreed that Ms Serenity should get the consent first of the managing partners.
- One of the debtors of the Partnership is Ms. Yale in the amount of Php 50,000.00. As it turned out Ms. Yale is also indebted to Serenity in the amount of Php 50,000.00. The former paid the latter the amount of Php 50,000.00 without any specification on what debt is to be paid. Serenity issued her personal receipt and applied the whole amount to her personal credit. In such a case the Php 50,000.00 would be applied proportionately to the credit of the Partnership and Serenity.
- In the first year of operation, the Partnership incurred liability amounting to Php 1,000,000.00. The assets of the partnership equals the partners contribution. In such a case, since the Partnership incurred liability, all the partners are liable with their separate property including Serenity as she is only exempted from losses.
- Mr. Hamlet owes money to Mr. Kerry. If Mr. Hamlet does not have enough separate assets to pay Mr. Kerry, then the latter has no remedy for he cannot go after partnership assets following the doctrine that a Partnership is a juridical being distinct and separate from that of the partners.
- The Partnership owns Delivery Van #1 to be used for delivery of the tshirts. Subsequently, it was replaced by a Delivery Truck #2. Delivery Van #1 is just parked in its garage without any apparent use. Curly would like to use it for personal use, however all the other partners did not give their consent. In such case, since Curly is a co-owner of Delivery Van #1, she may use such property even without the consent of the other partners. Besides, it is no longer used in partnership operations.
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